Global primary energy consumption grew strongly in 2017, led by natural gas and renewables, with coal’s share of the energy mix continuing to decline.

Energy developments

• Primary energy consumption growth averaged 2.2% in 2017, up from 1.2% last year and the fastest since 2013. This compares with the 10-year average of 1.7% per year.

• By fuel, natural gas accounted for the largest increment in energy consumption, followed by renewables and then oil.

• Energy consumption rose by 3.1% in China. China was the largest growth market for energy for the 17th consecutive year.

Carbon emissions

• Carbon emissions from energy consumption increased by 1.6%, after little or no growth for the three years from 2014 to 2016.

Oil

• The oil price (Dated Brent) averaged $54.19 per barrel, up from $43.73/barrel in 2016. This was the first annual increase since 2012.

• Global oil consumption growth averaged 1.8%, or 1.7 million barrels per day (b/d), above its 10-year average of 1.2% for the third consecutive year. China (500,000 b/d) and the US (190,000 b/d) were the single largest contributors to growth.

• Global oil production rose by 0.6 million b/d, below average for the second consecutive year. US (690,000 b/d) and Libya (440,000 b/d) posted the largest increases in output, while Saudi Arabia (-450,000 b/d) and Venezuela (-280,000 b/d) saw the largest declines.

• Refinery throughput rose by an above-average 1.6 million b/d, while refining capacity growth was only 0.6 million b/d, below average for the third consecutive year. As a result, refinery utilization climbed to its highest level in nine years.

• The increase in gas exports was driven largely by Australian and US LNG (up by 17 and 13 bcm respectively), and Russian pipeline exports (15 bcm).

Coal

• Coal consumption increased by 25 million tonnes of oil equivalent (mtoe), or 1%, the first growth since 2013.

• Consumption growth was driven largely by India (18 mtoe), with China consumption also up slightly (4 Mtoe) following three successive annual declines during 2014-2016. OECD demand fell for the fourth year in a row (-4 mtoe).

• Coal’s share in primary energy fell to 27.6%, the lowest since 2004.

• World coal production grew by 105 mtoe or 3.2%, the fastest rate of growth since 2011. Production rose by 56 mtoe in China and 23 mtoe in the US.

Renewables, hydro and nuclear

• Renewable power grew by 17%, higher than the 10-year average and the largest increment on record (69 mtoe).

• Wind provided more than half of renewables growth, while solar contributed more than a third despite accounting for just 21% of the total.

• In China, renewable power generation rose by 25 mtoe – a country record, and the second largest contribution to global primary energy growth from any single fuel and country, behind natural gas in China.

• Hydroelectric power rose by just 0.9%, compared with the 10-year average of 2.9%. China’s growth was the slowest since 2011, while European output declined by 10.5% (-16 mtoe).